THE JHARKHAND STORY NETWORK
Ranchi, September 19: The Task Force-Sustainable Just Transition (Government of Jharkhand), the Centre for Environment and Energy Development (CEED), and the Institute for Energy Economics and Financial Analysis (IEEFA) organized a conference on green budgeting and released a report ‘Just Transition Financing Pathway for Jharkhand’ today.
The event emphasized the urgent need for green budgeting and sustainable financing to drive the state’s energy transition and discussed various financial instruments and mechanisms to support the state’s effort towards greening the economy.
Green Budgeting: A strategic necessity for sustainability
Addressing the conference, Amarendra Pratap Singh, IAS (Retd.), Chairman of the Jharkhand State Finance Commission, highlighted the essential role of green budgeting in aligning financial decisions with environmental priorities.
Strategic planning in the green budgeting process is crucial for building financial structures that support sustainable growth. He emphasized that it ensures public funds promote sustainability and climate resilience while encouraging innovation and green opportunities that support development goals.
Establishing a just transition fund for Green Financing
Speaking on the occasion, Ajay Kumar Rastogi, IFS (Retd.), Chairperson of the Task Force-Sustainable Just Transition, emphasized the importance of green financing in facilitating Jharkhand’s shift to a forward-looking economy.
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He stressed that developing a financing framework to effectively guide investments into green infrastructure is important. Increasing budget allocations for green initiatives is vital for meeting national climate targets. He proposed establishing a Just Transition Fund to support sustainability efforts.
Socio-economic benefits of Green Budgeting
Ramapati Kumar, CEO of the CEED, discussed the extensive socio-economic benefits of green budgeting, explaining that it fosters environmental sustainability and supports in development of green infrastructure, new employment opportunities and alternative revenue streams. Developing a framework of green budgeting and climate finance mechanisms through inter-departmental convergence and support is key.
Fossil fuel dependence and transition imperatives
The report reveals Jharkhand’s significant reliance on fossil fuels, which accounted for 32% of the state’s revenue during the fiscal year 2022-23. In comparison, Chhattisgarh and Odisha derived 22% and 16% of their revenues from fossil fuels, respectively.
Additionally, around 57% of Jharkhand’s GST collection comes from fossil fuel-dependent industries, with steel, iron, cement, and coal contributing about 40%, and automobiles and petroleum adding another 17%.
The report aptly advocates for greening the economy by integrating sustainable finance and green budgeting measures to meet development goals and address transition needs.
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Public expenditure and green transition pathways
Vibhuti Garg, Director-South Asia of IEEFA, stressed that Jharkhand’s transition will require a shift in public expenditure toward green sectors such as renewable energy, sustainable agriculture, and green infrastructure. The pathways of just transition financing, as the report outlines, can help reduce the carbon footprint, stimulate economic growth, and create new economic opportunities in the state.
The conference concluded by emphasizing key pathways for just transition financing; prioritizing public expenditure through green budgeting, enhancing investment in green sectors, mobilizing additional finance through a sustainable finance framework, and building state capacity to manage the green transition effectively.
The conference was attended by members of the Task Force, senior officials of various government departments, particularly finance, planning and development, industry, energy, transport etc., representatives of State level Bankers Committee, NABARD, leading banks and financial institutions, and Shantanu Srivastava (Research Lead, IEEFA), Gaurav Upadhyay (Energy Finance Specialist, IEEFA) among others.
